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Subscribe to RSSNEW YORK – An early rally fizzled on the stock market Friday but still left the Standard & Poor's 500 index up 7.4 percent for the week, its biggest gain since March 2009.
A surprise drop in the U.S. unemployment rate sent stocks higher in early trading, but the gains faded during the afternoon.
The Dow Jones industrial average dropped 0.61 of a point to close at 12,019.42. The Dow ended the week up 7 percent, the largest weekly gain since July 2009.
Bank stocks rose sharply, continuing a weeklong rally. JPMorgan Chase & Co. jumped 6.1 percent, the most among the 30 stocks in the Dow average. Morgan Stanley leapt 6.9 percent, the second-biggest gain of any stock in the S&P 500 index.
European stock indexes and the euro rose after German Chancellor Angela Merkel made a speech pushing for tighter rules on government spending. Merkel said the 17 countries that use the euro must quickly restore market confidence by making financial controls stricter.
Bond yields for Spain and Italy fell, a sign that investors are becoming more confident in the ability of those countries to pay their debt. France's CAC-40 and Britain's FT-SE each rose 1.1 percent.
Markets could be in for more volatility next week as European leaders prepare for a summit to propose new measures for containing the crisis.
The Labor Department reported before the market opened that the unemployment rate fell to 8.6 percent last month, the lowest level in 2½ years. Economists had expected the rate to stay at 9 percent. But a key reason the unemployment rate fell so much was that more than 300,000 people gave up looking for work and were no longer counted as unemployed.
The Nasdaq composite index inched up 0.73 to 2,626.93. The Standard & Poor's 500 index fell 0.31 of a point to 1,244.28. The S&P surged 7.4 percent over the week, the most since March 2009.
Decisive steps by world leaders to right Europe's teetering economy sent stocks soaring on Wednesday. The Dow jumped 490 points, its biggest gain since March 2009 and its seventh-largest one-day point gain in history. The weekly point gain of 787 in the Dow was the second-biggest in its history, following a 946-point gain in October 2008.
"This market has been gripped with fear for a long time," said Peter Cardillo, chief market economist at Rockwell Global Capital. "And I think some of these fear factors are beginning to dissipate."
This week's strong stock performance is partially a reflection of the market's increased volatility since August, when concerns that Europe's debt was spinning out of control made dramatic stock price swings the norm. On Monday the S&P 500 broke a 7-day slide that had taken the index down 7.9 percent.
The improvements in the U.S. job market are "another illustration that the US economy is, for now at least, shrugging off the global economic downturn and fears about the collapse of the euro-zone," Capital Economics Chief U.S. Economist Paul Ashworth said in a note to clients.
Merkel and French President Nicolas Sarkozy will meet Monday to discuss changes to European Union treaties. The talks will culminate in a Dec. 9 summit of EU leaders, where the proposals are expected to be debated and detailed. Analysts say stricter controls on spending could encourage the European Central Bank to offer more short-term help for governments struggling with their debts.
If the European Central Bank takes a larger role in buying government debt, "it will certainly be a relief to markets," Cardillo said, "and maybe even mean Europe avoids falling into a deep recession. Not that it's going to cure all the problems of Europe."
In corporate news:
- Western Digital Corp. soared 7.5 percent, the most in the S&P. The data storage provider raised its revenue estimate for the current quarter and said that recovery efforts at its facility in Thailand following massive flooding there were proceeding faster than had been expected.
- Big Lots Inc. slumped 8.7 percent, after the retailer reported a 76 percent plunge in income because of lower margins and a loss related to a newly acquired Canadian business. The company buys overstocked items including food and housewares and sells them at a discount.
- H&R Block Inc. fell 6.4 percent. The country's largest tax-preparation company reported a wider quarterly loss late Thursday. H&R Block also said there was a jump in claims tied to bad loans made by its former subprime mortgage unit.
The Associated Press contributed to this report.
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The United States is in line to get our country foreclosed upon, just like what’s happening to the European countries. If you didn’t notice, the American and European banks just got bailed out again. The house of cards is collapsing. America is the largest debtor in the history of the world (15.1 trillion and counting).
I think most people have figured out that Wall Street is one of the most corrupt and ethically deprived institutions on our planet. I think most people also know the media is bought and sold just like most politicians. We also know that Wall Street is one of many tools of the elite but not the main tool. What is very clear is that our financial system has an architect and carefully designed plan that is playing itself out in Europe.
“Money” is derived from debt. The U.S requests Federal Reserve notes (debt) from the Federal Reserve (which is neither federal nor a reserve) by giving paper Treasury Bonds (debt) to the Federal Reserve in exchange. As a result, a concept is agreed upon, debt for debt, not anything tangible is agreed upon. Monopoly money is then authorized (created but not minted, that is done by Federal mints) by a consortium of mostly European banksters with the Rothschild’s at its head is also created out of thin air. Tack on Interest to that debt now owed to a foreign entity and you have a perfect storm for taking over and controlling economies and nations. The pool of debt money (exchange of Treasury Bonds for Federal Reserve notes) put in the system is now always there and can be replenished by borrowing more (exchanging more bonds for more notes) but the interest added to the debt is never put into the system and therefore can never be paid back. If there were no debts owed in our money system (money put in to the system and then paid back) there wouldn’t be any “money”, but because there is interest attached we will always have a negative balance by always having to borrow to pay the interest that is attached to every dollar borrowed. The interest is exponential and we can never break even again with the Federal Reserve and will always be in debt to them. “Money” isn’t designed to represent the value of the goods and services in any economy, it is merely used as an exchange for the goods and services, it is designed to put you into debt. The concept of interest owed and attached to loans will always exceed the money in circulation. So the big pool of money owed is bigger than the pool we as laborers actually have to draw on to pay our bills. It’s like musical chairs we are always competing for the small pool of money and there have to be winners and losers in this system. That’s why inflation is a constant and new money is always needed to cover the interest. Interest (usury) is the bullet in the Federal Reserve’s weapon of mass destruction. Without a country controlling and managing their own currency they are then relegated to economic slavery. I will try and explain as I go along, please pardon the redundancies.
The dominoes are beginning to fall in what is an orchestrated attempt by the banksters (Federal Reserve and its subsidiaries) to consolidate Europe and eventually the rest of the world’s economies under one umbrella that is to be controlled by those that have always controlled currency and money. The most egregious aspect of this contrived extortion is that they are blaming the people who are the backbone of any economy instead of their greedy corrupt political and business leaders.
George Papandreou was pressured to quit because he lapsed into a morally and ethical responsible position by trying to give the people of Greece a say in their economic future through a referendum. This vote would have given the Greek people the choice to stay in the Euro zone and allow their country to be foreclosed upon by the banksters or leave the Euro regain their sovereignty and coin their own currency once again. The IMF bullied the smallest country as a litmus test for what is going to be a much more challenging foreclosure process when it comes to the larger economies. Italy is now in the cross hairs. This dilemma you are watching unfold goes to the core of the rotten apple that is the world’s financial system.
Folks, you are witnessing the death throes of a corrupt financial system where the stock markets and the fractional reserve banking system are at its core. In the United States, It doesn’t matter who’s in office. Our political system has turned into a two headed one party system with both parties serving their masters, Wall Street and the banksters/Federal Reserve. The stock market is just another ponzi scheme whose intent is to fleece the gullible at the bottom of the pyramid. The stock market is a rogue element of a financial system that is meant to funnel the wealth to the elite/banksters who soicopathically control our financial lives. The stock market isn’t the main problem; it’s the fractional reserve banking system that has set the foundation for outright theft. We are experiencing the biggest bank and investment robbery in history and the banks and financial institutions are doing the robbing. When you blame one political party or another they have you right where they want you, in fear, divided and distracted to the theft that is going on right in front of your eyes each and every second of the day.
When you have people on Wall Street day trading and speculating making half a million dollars a year in their twenties betting on people being foreclosed on, you need to ask yourself what is the true purpose of our banking system?. MF Global CEO, ex Goldman Sachs CEO Jim Corzine knows this and knows that nobody with his connections have served any time for stealing the investor’s money (1.2 billion at last count). The financial system’s main mission should be to allocate capital to areas of greatest growth in the real world economy. Yet they allow all kinds of broker speculation and financial gimmicks such as the derivative markets which are based on non-realistic side bets which are now in the quadrillions. The derivatives market was illegal for most of the 20th century.
The European banking crisis is a prime example of what is going to happen to all economies associated with stock market fraud and the Federal Reserve banking system. The financial strife in Greece is the model that will befall most countries. Greece is but a symptom of a cancer that has attached itself to the world’s economies. The Federal Reserve (which is neither federal nor a reserve) has been creating money (monopoly money) out of thin air and charging interest on it insuring a debtor economy for anyone who chooses or is forced to get involved with the Federal Reserve and their fractional reserve banking system. That is why this whole European or any countries current debt crisis will never be resolved and will be preyed upon by the stock market vultures. The Federal Reserve System is designed to cause economies to fail.
If someone loans you two dollars to run your economy and expects three back for the loan and interest how are you going to pay the third back? You can’t unless you borrow more dollars which puts you in perpetual debt and in a constant borrowing cycle to pay off the debt. This is designed not accidental.
Here’s the kicker, once the Federal Reserve/banksters have you struggling to pay off your interest, they send in their loan sharks the International Monetary Fund (IMF). The IMF will loan you money to cover your ever burdening interest payments but they attach a provision that if you default, you will have to give them your assets in what they call privatization (foreclosure).
Banks, Central banks, World Bank, IMF = Federal Reserve = Debtor economies, (slaves economic slaves)
Very well written, too bad you're full of .... Rothschilds? Really? This is the same rationale that Karl Marx (and his brothers) referred to in the 1830s. And do you find it slightly anti-semetic to blame nasty Jewish bankers for the world's ills?
Nice dissertation.
Obama 2012!! Yes!! And stop rooting against the economy you unpatriotic TeaBaggers.....
Name one part of TrustVerify's comment that isn't true....
Stock market is not an accurate indiation of a nation's current economy.
How do you cancel this thing. They're going to put me on their list. Someone cancel this. Please.
It's okay Mary you're safe here. This is not Foxjews... this is jewsvine silly.
Hey Trusty,
Manifesto much?
TL:DR This is the Comments section, not the Manifesto section.
You are spot on with many points in your dissertation but do not let fiat currency depression cloud your mind.You leave out one huge point and that has to do with gold standard,where our paper value was based on the amount of gold in stock at Fort Knox as well as many other reserve areas.Thats the way value was set in the past though now I do not thinkit would be possible to go back to that standard.Gold is skyrocketing in value but not as fast as would be expected in this economy though I get a feeling that is soon to change as well as the value on many other precious metals.What I am saying is money now is based on the value of labor and it has been for awhile now..
Its christmas time people of course the numbers are up. once christmas is over the money stops and people go into debt. money for christmas. watch the dow numbers drop after christmas and never return to the postive
Who writes these headers? How far out did the market close? It's another misplaced preposition.
Yay everyone go out and buy some stocks! Because as we know the stock market is the economy. Now where's my carboard box?
Its George Bush's fault.
Closed the best week since 2009 living in unreality and a bubble!
Aren't you glad the 1% is doing so well?
The whole stock market is rigged. Nothing but insiders making trades. CEOs getting massive stock options for their drive to outsource/offshore to balloon the bottom line.
Wall Street is a scam for the rich to continue to fleece the middle class. I wouldn't put a nickel in the market. It's rigged.
Actually folks are celebrating the "Pre November 2012 event" of the out of BHO.
It is hard not to get excited about next years good news!
to bad main street is not posting any gains
Best week since 2009 is nothing to get excited about when it means the markets have barely recovered the losses they suffered over the last few weeks. This is not a market for real investors, it's a market for day-trader gamblers.
Time to jump back in! The water's warmer! The computers are humming! Put your money out there... where the inside traders can grab it!
Trust/verify..nice piece. Accurate. Wall street has created false worth, just like the inflated house values in our country. Imagine Facebook to be "worth" between 50 and 100 billion--rediculous. Same with many companies...they are simply not worth their stock prices.
How about the Belgium bank that got bailed out a month ago--it had just passed a stress test, adn the Moody's of the world had it AAA rated right to the end(again).
BTW, no matter what the gov does, real estate prices will continue to fall. I look back at nice houses I bought in my lifetime, for $25K, $47K(yes, only 30-40 years ago), and $100K in LA(pool, on a golf course, big house)--they all went up to $700K--incomes did not support this, just bubble creation by our government. I hope you all know that the 3.5% down payment the FHA requires, is creating the next wave of foreclosures.
The big uptick this week was about nothing--a system that was already in place was touted as a rescue for banks--all that was done was to lower interbank lending 1/2 of 1%.
Yes indeed I do see a depressionlurking worldwide also.Values will pop..
And the week before, it was the worst week on record for the market since 2008. Whose winning, the traders.
People are just so negative lately.
lmao...anyone who blames the or credits the president with hurting or helping the economy must be a socialist somehow dependent on the public trough...out here in the real world the economy has been expanding for two years...my business can barely keep up or find enough qualified employees...
Wait until January and February's numbers come out. This is when the retailer's let go of the parking lot cart pusher's, the stocker's, and cash register people go.
This isn't a new horizon for America's growth and outlook, but the same movie we have seen for years. The trouble is that many of us have seen this same movie over and over, but allow Washington to do business as usual.
The zip-zip's in China with money are telling how
American'sWashington how to play THEIR game.A little one handed math for China......
Q: If I have five fingers sticking up, and take away 4, what is the answer?
A: The thumb ain't one of them!
Best week since 2009 right after the worst week since 2009... now we're getting somewhere.
best week ever, you can thank the u.s. tax payer for bailing out Europe, putting their debt on us ,just more NAILS IN THE BOX!!!!!!!!!!!!!!
How did the taxpayer bail out Europe? The Fed reduced loan rates to European banks from 1% to .5% with the loan secured by the ECB.
As Bloomberg notes, "bank swap and libor rates show that the bailout might not be enough to stem the sovereign default crisis".
These dollar swaps are purely inflationary and will harm American consumers as much as any form of quantitative easing.
The Fed is behaving much as it did during the 2008 financial crisis, only this time instead of bailing out politically well-connected too-big-to-fail firms it is bailing out profligate government spending. Citizens the world over deserve better than this. They deserve sound money that cannot be manipulated and created out of thin air by banksters who promise printed prosperity. Fiat money caused this European crisis and the financial crisis before it. More fiat money is not the cure and debt for debt is insanity. The global fiat currency system has proven itself a failure, we need real monetary reform. We need sound money. Until we remove our economy from the clutches of the Fed, we will continue to lose our wealth and our sovereignty.
Hey, a little more good news about the economy... and a whole lot of end-o-the-world jabber from the Right. Jesus, that first post is longer then the article. Although I agree about the disconnect between Wallstreet and mainstreet.
Interesting that Europe's markets got a bump based on Merkel's stating that the government should more strictly regulate the banking industry. They don't let the lunatics run the assylum over there... Over here we've got a whole political party fighting tooth-and-nail to get rid of what little banking regulation we've got. All of this strikes me as less "the end of the euro," and more its first trial by fire. They'll get through this and be stronger for it. Here, we'll have another election cycle with people telling us that if we cut taxes for the rich and deregulate everything, the same policies that got us into this mess will magically work this time.
Nothing that's going on now hasn't happened before. All of this good news that has been coming out may not be the last of the hard times, but I hope it at least indicates to everyone that the hard times will pass. Quit listening to anyone who tells you that "its all going down in flames." Its not.
Oh Happy Days are hear again...
At one time owning an American company was something that people talked about with great pride. Now, hardly anything is made in America, if it is, it's goods are purchased with credit, and then the money is collected from offshore telemarketers who cannot even speak a lick of English. Pride! Maybe that is what is missing. That and common courtesy. It frightens me that what little I have managed to squirrel away for my retirement is somewhere out in thin air, and hopefully when I need it, someone can make it magically appear! I do believe in the market. I do, I do.
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